The HRA or Health Reimbursement Arrangement is an employer-sponsored plan to reimburse a portion of you and your eligible family member’s out-of-pocket medical expenses, such as deductibles, coinsurance, and pharmacy expenses.

Your employer has designated a specific dollar amount to credit to the account (either monthly or annual contributions). You choose which out-of-pocket qualified medical expenses you would like to submit for reimbursement. Furthermore, unused account balances roll over to the following plan year, provided your employer continues to offer the program, and you remain enrolled in it.

HRA, QSEHRA & ICHRA Plan Administration


HRA providers need to stay in compliance with third-party benefits administrators. Third-party administrators provide daily administrative tasks and help ensure your HRA account stays compliant with federal, state and local regulations.

We offer everything needed to set up Qualified Small Employer Health Reimbursement Arrangement, Qualified Small Employer Health Reimbursement Arrangement, and Individual Coverage Health Reimbursement Arrangement are included in our services.

Plan Documents

Outlining plan’s participants and beneficiaries, and guides the plan sponsor and plan administrator in making decisions and executing their responsibilities.

Board Resolution & Adoption Agreement

Document verifying unanimous consent from the Board of Directors.

Notice to Employees

Guidance on the notice to employees of coverage options under FLSA

Summary Plan Description (SPD)

Document outlining the most important facts employees need to know about their retirement and health benefit plans including plan rules, financial information, and documents on the operation and management of the plan.

Qualified Small Employer Limits Increased for 2022

QSEHRA Coverage
(Annual limits)









Q & A

At the beginning of each plan year, your employer will notify you of the amount they will contribute to your Health Reimbursement Arrangement for that plan year.

Yes. All eligible employees must enroll each year during the open enrollment period. Your employer will instruct you on how to complete enrollment.

Yes, as long as your dependent meets the definition of a dependent as defined by the IRS and is included in your employer’s plan.

It depends upon

  • The type of Account— check with your employer if you’re not sure.
  • The dollar amount your employer will contribute to the HRA.
  • Your household income.
  • other household members can also use the HRA.

Qualified Small Employer Health Reimbursement Arrangement: Small employers who don't offer group health coverage to their employees can help employees pay for medical expenses through a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). If your employer offers you a QSEHRA, you can use it to help pay your household's health care costs (like your monthly premium) for qualifying health coverage.

Individual Coverage Health Reimbursement Account: Starting in January 2020, employers can use the Individual Coverage, which provides more flexibility for employers of all sizes. For example, a large company that provides group insurance for full-time employees may offer ICHRA benefits for part-time or seasonal employees.


For thousands of employers, offering health benefits to their employees has been out of their company budget due to the high cost of insurance plans. That all changed in January 2020, when the Individual Coverage Health Reimbursement Arrangement (ICHRA) became available to businesses and organizations of all sizes. 

With this type, employers fund a monthly allowance to reimburse ICHRA-eligible employees for qualified medical expenses and health insurance premiums. Employees must be enrolled in an individual health insurance plan and cannot receive premium tax credits to qualify for reimbursements from an ICHRA.

As the name implies, ICHRA is based on reimbursing employees for insurance rather than buying it. At a high level, the way ICHRA works is very simple:


  1. Employers design their plan, including defining which employees are eligible and establishing reimbursement limits
  2. Employees purchase the individual plans they want
  3. Employees submit claims for reimbursement
  4. Employers reimburse employees for valid claims

Our Benefits Division, B3PA, manages all benefits administration plans. Please feel free to visit B3PA's website for additional insurance information and benefit solutions for employers and brokers.

How can I use my Health Reimbursement Arrangement (HRA) dollars & Prepaid Benefits Card?

• Acupuncture
• Ambulance
• Artificial limbs
• Artificial teeth
• Blood sugar test kits for diabetics
• Breast pumps and lactation supplies
• Drug prescriptions
• Eyeglasses and vision exams
• Fertility treatment
• Hearing aids and batteries
• Hospital services
• Chiropractor
• Contact lenses
• Dental treatments including X-rays, cleanings,
fillings, braces and tooth removals
• Doctor’s office visits and procedures
• Drug addiction treatment
• Special education services —recommended by a
doctor — for learning disabilities
• Speech therapy
• Stop-smoking programs (including nicotine gum
or patches, if prescribed)
• Surgery, excluding cosmetic surgery
• Inpatient alcoholism treatment
• Insulin
• Laboratory fees
• Laser eye surgery
• Over-the-counter (OTC) medicines and drugs
if prescribed by a doctor (see more information below)
• Physical therapy
• Psychiatric care if the expense is for mental health care
• Vasectomy
• Weight-loss program, if it’s a treatment for a
Over-the-counter (OTC) medicines and drugs*
Examples of OTC medicines and drugs that may be covered if a valid prescription is provided include:
• Ointments for cuts, burns or rashes
• Aids for indigestion
• Allergy and sinus medicine
• Antidiarrheal medicine
• Baby rash ointment
• Acid controllers
• Acne medicine
• Motion sickness medicines
• Nasal sprays or drops
• Cold and flu medicine
• Eye drops
• Feminine antifungal or anti-itch products
• Hemorrhoid treatment
• Laxatives or stool softeners
• Lice treatments
• Pain relievers, such as aspirin or ibuprofen
• Sleep aids
• Stomach remedies
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